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PERMIT #: M -1990 -098 <br />INSPECTOR'S INITIALS: PSH <br />INSPECTION DATE: April 14, 2014 <br />OBSERVATIONS <br />The Perry Pit was inspected by Peter Hays with the Division of Reclamation, Mining and Safety <br />(Division /DRMS) as required by the Transfer of Permit and Succession of Operators process and Rule 1.12. Mr. <br />Chris Zadel with Northern Colorado Constructors, Inc. (NCCI) and J.C. York with J &T Consulting, Inc. were <br />present during the inspection. The site was previously inspected by the Division on August 21, 2009. <br />On November 13, 2013, NCCI submitted a Transfer of Permit and Succession of Operators Application Form <br />(SO -01) and selected to maintain their right to a decision within 30 day and therefore was required to provide <br />a replacement financial warranty in the same amount maintained by Asphalt Paving Company. On April 14, <br />2014, the application was deemed complete following the submittal of the appropriate financial and <br />performance warranties and all required structure agreements. The Division approved the Transfer of Permit <br />and Succession of Operators for the Perry Pit on April 14, 2014. NCCI is now the permitted operator of the <br />Perry Pit and Asphalt Paving Company has been released from reclamation responsibility for the site. <br />Financial Warranty: <br />The Division is required to recalculate the required reclamation bond within 60 -days from the date the <br />transfer is completed. The Division currently holds a reclamation bond in the amount of $1,536,595.00, which <br />is adequate to reclaim the site based on this inspection. NCCI will not be required to post additional financial <br />warranty for the site at this time. During the inspection, NCCI stated they intend to submit a financial <br />warranty reduction request to remove the bonding requirement for a majority of the installed and approved <br />slurry wall. <br />Hydrologic Balance: <br />The long -term groundwater augmentation requirement for site has been complied with by the installation of a <br />slurry wall. <br />Gen. Compliance With Mine Plan: <br />The Perry Pit was inactive during the inspection and has not been mined for over a year based on annual <br />reports submitted by Asphalt Paving Company. NCCI intends to restart mining the site shortly after the SO <br />application is approved by the Division. <br />The following problem requiring corrective action was cited during the Division's October 28, 2002 inspection <br />and was not addressed by the previous operator. <br />Problem: There are portions of an inadequate flood control levee and unstable stream bank within the <br />permit area of the Perry Pit <br />Corrective action: Submit a plan, in the form of a technical revision, which describes measures to re- <br />establish a continuous flood control levee and ensure a stable west stream bank throughout the reach <br />of the South Platte River that occurs within the permit area. Employ these measures prior to final <br />bond release. <br />NCCI stated a section of the west bank of the Platte River would be stabilized with rip rap in the near future <br />following approved of a 404 permit from the Army Corps of Engineers. The bank needs to be repaired due to <br />erosion caused during the flood event last year. The stabilized river bank repair work will be submitted as a <br />Page 2 of 6 <br />